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Would you, as an employer, be ready for a NERA Inspection?

The National Employment Rights Authority (NERA) was established on an interim basis by the Government in February 2007. NERA aims to secure compliance with employment rights legislation.

NERA’s Inspection Services are regionalised. In general Inspectors have the following powers under the above legislation:

  • To enter any premises at a reasonable time
  • To demand sight of records
  • To inspect records
  • To take copies of records
  • To interview and require information from any relevant person

NERA Inspectors undertake both “announced” and “unannounced” inspections.

  • In the case of 'announced inspections', the inspector will contact the employer by letter or telephone to advise the employer that it is intended to carry out an employment rights compliance inspection on their business and to make the necessary arrangements for undertaking the inspection.
  • In the case of unannounced inspections, the inspector presents at the place of business and seeks the production of appropriate records.  

The Inspection

At the start of any inspection, the Inspector identifies themselves, shows their authorisation, which includes photographic identification, and will explain the purpose of the inspection. The inspector will:

  • Ascertains the name(s) of the person(s) who keeps and updates the records
  • Examines the records to establish that they are in compliance with the relevant employment rights legislation
  • Determines the rates of pay in respect of each employee from the rosters and the wages records presented
  • Informs the employer during the course of the inspection of any breaches of the legislation identified
  • May interview employees.   

An Inspection will typically last 2-3 hours.  The duration depends on a number of factors including the size of the business and the volume and quality of the records.

The following list sets out the standard records which an inspector will require access to during the course of an inspection: -

1. Employer registration number with the Revenue Commissioners

2. Full Name, Address and PPS Number for each employee (full-time and part-time)

3. Terms of employment for each employee

4. Payroll details (Gross to Net, Rate per hour, Overtime, Deductions, Shift and other Premiums and Allowances, Commissions and Bonuses, Service Charges, etc.)

5. Copies of Payslips and corresponding payment records

6. Employees’ job classification

7. Dates of commencement and where relevant, termination of employment

8. Hours of work for each employee (including starting and finishing times, meal breaks and rest periods). These may be in the form of Form OWT1 (or in a form substantially to like effect).

9. Register of employees under 18 years of age

10. Whether board and/or lodgings are provided and relevant details

11. Holidays and Public Holiday entitlements received by each employee

12. Any documentation necessary to demonstrate compliance with employment rights legislation

Additional records may be required to be held depending on the sector/business involved and the legislation under which the inspection is being conducted.

After the inspection has concluded NERA Inspection Services will contact the employer in writing to advise them of the outcome of the inspection.

Joint Investigations

NERA Inspectors will join with the Department of Social and Family Affairs and the Revenue Commissioners to work together in Joint Investigation Units (JIUs).  The role of the JIUs is to address areas where evidence suggests that non-compliance exists. 

Relevant employment data can be exchanged between the Revenue Commissioners, the Minister for Social and Family Affairs and the Minister for Enterprise, Trade and Employment. This exchange of information enhances day-to-day inspectorate, prosecution and enforcement activity within NERA.  NERA Inspectors have also taken part in joint investigations with the Department of Social and Family Affairs and Revenue Commissioners inspectors, and will continue to undertake such inspection in the future. 

 

For further information in relation to this topic, please visit www.employmentrights.ie

Should you require assistance in preparing for a NERA inspection please do not hesitate to contact our office on 091 637585

Linda Gill B.B.S

03 March 2010